Title: Place-based public investment in regional infrastructure, the locational choice of firms and regional performance: the case of India.
Authors: Vasilakos, Nicholas; Pitelis, Alkis Theonas; Horsewood, Nick; Pitelis, Christos
Abstract: We discuss conceptual reasons for and propose public investment in regional infrastructure as a hybrid form of a place-based regional industrial policy aiming to foster the regional economic activity of lagging regions. We present and empirically test a baseline model using data for 14 Indian regions/states over a period of 39 years. Our results show that place-based regional infrastructure investments, particularly in electricity-generating capacity and width-adjusted length of national highways, positively impact the relative number of firms operating in a region and help foster its economic performance.
Subjects: PUBLIC investments; ECONOMIC development; MANUFACTURING industries; ELECTRICITY; INVESTMENTS
Publication: Regional Studies, 2023, Vol 57, Issue 6, p1055
ISSN: 0034-3404
Publication type: Academic Journal
DOI: 10.1080/00343404.2022.2146666

Place-based public investment in regional infrastructure, the locational choice of firms and regional performance: the case of India.

Vasilakos, Nicholas; Pitelis, Alkis Theonas; Horsewood, Nick; Pitelis, Christos